Busted: Bankers and The Global Economy

September 27, 2008

U.S. Sovereignty Lost to Federal Reserve

a corporate nation

United States now a multinational corporate nation

For a long time the U.S. Securities and Exchange Commission has been committed to deregulation and a proponent of voluntary regulation. The head of the SEC, Christopher Cox admits that voluntary regulation has been a major contributor to the market and economic collapse. By his admission, the government regulatory oversight program was fundamentally flawed from the beginning.

The reality is that the SEC is out of a job because investment banks in the strict sense no longer exist. The SEC will still have primary responsibility for regulating securities brokers and dealers. However, the interesting prospect is that all future oversight will be turned over to the quasi-governmental Federal Reserve under Ben Bernanke. All the government players have agreed that government regulatory failures brought on the economic collapse.

A grand attempt to extort the nation has been made by Henry Paulson as he claims that the United States must rush into a solution that has been evolving for the last twenty years. His reputation is on the line. The reputation of the Bush administration is on the line if they still have one. The reality behind the immediate panic of the crisis rests firmly on the loss of jobs in America as bad mortgage securities continue to implode on nation. Trust across the board has been diminished and lost. The crisis of confidence reigns supreme.

The Federal Reserve continues to attempt to suck up more and more control and power. And why not? They hold the purse strings and ultimately the support required to run the nation. The United States has lost its sovereignty to what is effectively a multinational corporation courtesy of the mindless politicians that citizens elected to man the helm of the United States. They have lost the will to manage money, turning the nation into a den of slavery. The United States is effectively a corporation that belongs to International Bankers, a fascist state of sorts.

corporate slaves

corporate slaves

The Federal Reserve cannot be audited even though there have been some moves by Congress to make the attempt. The Fed has resisted responsibility for national accountability, instead using economic theory and global banking governance to bolster its position and control over the dollar. The world is now effectively run by an International Banking Cartel that on this website is referred to as the International Society of Bankers. ~ E. Manning

For more information on this topic including the hierarchy of the global banking system, review this website.

 

January 10, 2008

Credit Crunch: Is World Banking in Trouble?

creditcrunch.jpgIn the eyes of many financial experts, the recent weakness in the world banking system is a regional symptom in that market and not a systemic problem. Right now financial firms that have exposed themselves to “subprime” mortgages face much larger losses on the surface than other banking and finance firms. On a regional basis, the value of homes in the U.S. market as well as other assets like stocks and bonds, have been adversely affected. As a result, bank losses have multiplied and lending has been sharply curbed as a result of defaults on loans and the devaluation of bonds. These loans and bonds are the profitable mainstay of banking. These banking declines continue to be revealed in the United States and worldwide. The news is now reporting job losses and continuing expected job losses as a result of the economic slump in the United States.

Economic analysts have been quick to lay blame on policymakers. The trend of “deregulation” has created a climate with little oversight by bankers and regulators. It is natural that “the industry” would want to spread the risk and increase profits by seeking bond investors throughout the world. When the crisis hit from relentless profiteering and the crumbling base of the “subprime” mortgage bonds, the investment world was sent into a tail spin. Naturally, the goal of the industry is to detract attention from the crisis along with any responsibility, while shifting as much of any catastrophic loss as possible. The history of the banking and finance industry shows that the Federal Reserve and other central banks will ultimately take care of everything, acting much like a large safety net to bolster the system. Any financial instability dramatically risks increasing the national debt for the region along with devaluation of regional monetary value. The Federal Reserve and other central banks will play a reassuring role by trimming short-term interest rates and creating new channels of commercial credit.

Jean-Claude Trichet, president of the European Central Bank disclosed the need to watch continued uncertainty in the money markets to ensure smooth functioning. The theory of the Federal Reserve is to reduce interest rates more aggressively to prevent the current credit crisis from evolving into a recession that would deepen the credit crisis currently underway. The weakness in the banking industry lies in the size of the U.S. market as well as the fact that hundreds of billions in U.S. mortgage debt have been invested in by overseas investors.

The banking system does have systemic problems. Banks have bet heavily on the continued boon of their market through the use of creative internal loan schemes. They are being forced to absorb losses and lower the value of their banking assets. As credit ratings on bonds are lowered, asset values continue to deflate. Contracts called credit default swaps were designed to insure against loan losses, but are in reality untested theory. As a result, banks are now very fearful to lend to one another. The reality is that interbank lending is a routine part of the world economy and is required for status quo operations to continue. The irony is that what bankers fear most is exactly what they must face on a daily basis.

On the surface, most bankers and their mouthpieces are optimistic. They say that the global economy will escape major damage. Behind the scenes, they are shaking in their boots from enacting new profit-generating policies that threaten to swallow banking reputations and liquidity whole.

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